An up-channel chart pattern has formed in the chart of Analog Devices Inc. (NASDAQ:ADI). The stock is expected to either break through the channel resistance, or break below the channel support. Read more to learn how to profit from this trade.Analog Devices Inc. (ADI) is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. ADI's chips are also incorporated into wireless infrastructure equipment.
The company is benefiting from strength in the consumer, industrial, and automotive end-markets. It is seeing increased demand for high-performance analog and mixed signal solutions. Plus, there is growing momentum in the electric vehicle space due to its robust Battery Management System solutions.
ADI has a current ratio of 1.1, indicating it has more than enough liquidity to handle short-term obligations. This has led to a Quality Grade of B in our POWR Ratings system. The company has seen steady earnings growth over the past five years, averaging 16.6% per year. Analysts expect earnings to rise 30.8% this year.